Department for Business, Energy and Industrial Strategy

Labour Market update

Greg Clark: I am writing to inform the House that over Conference Recess I announced the Government’s intention to: legislate to ban employers from retaining tips earned by their staff; consider creating a duty for employers to advertise all jobs as flexible unless there is a good business reason not to; and to consult on whether large employers (those with 250 or more employees) should be required to publish their parental leave and pay policies.TippingThe Government will introduce legislation to ban employers from making deductions from tips, ensuring tips go to the workers providing the service. While most employers act in good faith, in some sectors evidence points towards poor tipping practices, including excessive deductions being made from tips left in good faith by customers.This legislation will give consumers reassurance that the tips they leave are going to the staff, as they intended. It follows a consultation which found a majority of respondents in favour of preventing any employer deductions from discretionary payments, except those required under tax law.The Government will announce further details in due course, including measures to ensure employers are able to continue to distribute tips via independent and staff-run ‘tronc’ systems.Flexible workingThe ability to work flexibly enables people – both men and women – to balance their work and home lives more effectively. Moreover, flexible working gives employers access to a wider talent pool and enables better matching of applicants and jobs. Employee engagement, performance and productivity are also improved.However, flexible working is still relatively uncommon, which sometimes holds people back from requesting it. The Government would like it to be clearer from the outset whether flexible working is an option. Research indicates only 9.8% of quality job vacancies are advertised as open some kind of flexible working, yet many more are likely to be.The Government want employers to consider whether a job can be done flexibly, and to make that clear when advertising. There are many good reasons why a job might not be suitable for flexible working, but where it is, signalling this at the outset will encourage interest from a wider range of candidates and enable both sides to take full advantage of the flexibility.Transparency on parental leave and payStatutory entitlements to parental leave and pay enable mothers who want to return to work earlier to do so and enable more fathers and partners to be their child’s main carer where this is best for the family. Statutory entitlements are also important in closing the gender pay gap, by providing parents with more opportunities to remain in work and to progress their careers.Many employers offer enhancements to the statutory entitlements, but surprisingly few publicise these policies. This means that job applicants have to ask specifically about these policies – which some may be reluctant to do.Mandatory gender pay gap reporting, introduced in April 2017, already provides a clear incentive to large employers to review their policies and recruitment procedures and to publicise those that enable them to recruit and retain female talent. The Government wants to accelerate that improvement by encouraging large employers to publish their parental leave and pay policies, and will consult on a proposal to require large employers to publish their parental leave and pay policies. 


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Business Update

Greg Clark: Last week I published a Call for Evidence seeking views on the extent and impact of late payment and measures to go further in tackling the issue. This follows the commitment made by the Chancellor of the Exchequer in his 2018 Spring Statement that the Department for Business, Energy and Industrial Strategy would lead on a Call for Evidence to ‘eliminate the continuing scourge of late payments’.Since 2012, the overall level of late payment debt owed to SMEs has fallen substantially, to £14.2 billion last year, down from £30.3 billion five years ago according to BACS, the payment service provider. While the halving of late payment debt is welcome, I am determined to see this reduce still further.Alongside this publication, I announced that the Government would take immediate action to tackle late payment, by introducing the following measures:A new, tough and transparent compliance regime to underpin the Prompt Payment Code. The Small Business Commissioner will join the Code’s Compliance Board to provide independence from industry and the Board will report on all cases of signatories being removed from the Code. Further reform to the Code will be considered through the call for evidence, including whether the Small Business Commissioner should have a greater role in its administration.The Call for Evidence will also consider the best way to ensure all companies have responsible payment practices in their supply chains, including whether all company boards should give one of their non-executive directors responsibilities for prompt payment.The Call for Evidence will be open until 29 November and I encourage businesses of all sizes to respond; I want to understand the impacts, experiences and reasonings for particular payment practices and views on what more can be done to enhance the payments process.I will be depositing copies of the Call for Evidence document in the Libraries of the House.


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Department of Health and Social Care

Clinical Waste Update

Stephen Barclay: This statement is to update the House on an issue concerning clinical waste collection and disposal for hospitals and other public services.On 31 July, the Environment Agency notified central Government of an issue concerning clinical waste collection and disposal for hospitals and other public services provided by the company, Healthcare Environmental Services (HES). In this instance, the primary concern was that too much waste was being held in a number of waste storage and treatment sites by a contractor, Healthcare Environment Services (HES). While the waste was stored securely, it was not being processed and disposed of within the correct regulatory timescales. At no point has there been an impact on public health or any delay to the ability of the NHS to carry out operations.The Department of Health and Social Care, Defra, the Cabinet Office, NHS England, NHS Improvement and the Environment Agency have worked together to resolve these issues. From the outset, the Government’s priority has been to ensure measures were put in place so that Trusts could continue operating as normal should there be any disruption to waste collection and disposal. This objective has been achieved. The Department of Health and Social Care has worked with the NHS to help Trusts put these contingency plans in place. A major part of these contingency plans concerned contractual discussions with HES and other providers which were commercially sensitive.Following the Environment Agency’s issuing of a partial closure to HES’s Normanton site, on 3 October the regulator, NHS Improvement, issued a letter to HES to advise them that they had concerns in respect of services provided to trusts. To give HES an opportunity to set out how it was complying with its legal and contractual obligations, NHSI gave HES 48 hours to provide evidence that they were operating within legal and contractual parameters and set out a number of threshold levels. NHSI concluded that HES failed to demonstrate that they were operating within their contractual limits. Consequently, 15 NHS Trusts served termination notices to HES formally to terminate their contracts at 4pm on Sunday 7 October. In parallel, the Department of Health and Social Care, the Cabinet Office, NHS Improvement and the affected Trusts have negotiated a new contract with Mitie to step in and replace this service. This contract was enacted, following the termination of the contract with HES, and Mitie have been fully operational across all affected Trust sites from Monday morning.Throughout, the Government’s priority has been to ensure measures were put in in place so that NHS Trusts can continue operating as normal. No gap in service provision has been reported and we are working to ensure that this remains the case.The Environment Agency are taking enforcement action against HES to clear the excess waste from their sites and bring the company back into compliance with their permits. As part of this enforcement activity, the Environment Agency have partially suspended the company’s permit at their Normanton site. This will prevent HES from accepting any more incinerator-only waste, as the company focuses on clearing the backlog of waste on-site. The Environment Agency are also progressing with enforcement action at the other non-compliant sites. This includes following up the first enforcement notice for the HES Newcastle site. If the site does not become compliant, the likely next stage is a partial suspension to prevent the acceptance of incinerator only waste at Newcastle. It is the company’s responsibility to clear its sites and operate legally.I am updating the House on this situation now, given that new contracts have been signed following the conclusion of the commercially sensitive process. I can confirm that NHS services continue to operate as normal. We are ensuring that there are contingency plans in place in case of any disruption, and that there is absolutely no risk to the health of patients or the wider public. The Government is working with the Environment Agency and NHS to ensure lessons are learnt, and we are reviewing how contracts will be awarded in the future.


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Ministry of Defence

Type 26 Frigates Base-Porting

Gavin Williamson: Today I am confirming our plans to base-port the Royal Navy’s Type 26 Frigates at HM Naval Base Devonport in Plymouth. This decision is judged to be in the best interests of the Service and to provide greater stability for Service personnel and their families. Navy Command and the Defence Equipment and Support organisation will continue to work closely with our industrial partners to ensure that the transition from the current Anti-Submarine Warfare Type 23 Frigates to the new class is effectively managed. There has been much interest in this subject from honourable Members representing both Plymouth and Portsmouth who have spoken passionately in support of their respective Bases becoming the home of the Type 26 Frigates. This decision should in no way be seen as a reduced commitment to Portsmouth; both Naval Bases will continue to support the Royal Navy, allowing the Service to continue to meet the tasks we ask in countering the threats we face and protecting the nation’s security.

Airborne Warning and Control System

Stuart Andrew: I am pleased to inform the House today that the Ministry of Defence (MOD) has begun discussions with Boeing about the potential for the E-7 Advanced Early Warning and Control ‘Wedgetail’ aircraft to replace the current Sentry fleet. Since the 2015 Strategic Defence and Security Review, the MOD has undertaken significant work to understand the best way to invest in and improve the RAF’s airborne warning and control capability. As part of that work, we have considered the defence requirement and rapidly evolving threat environment, conducted market analysis, and held discussions with our close allies, so we could fully understand the options available to us. It has become increasingly apparent that an upgrade to the existing UK E-3 Sentry aircraft will not offer best value in meeting the UK’s capability requirement. As such, the E-7 Wedgetail, which has been proven on operations and is already in use by the Royal Australian Air Force, is likely to be the best option to provide ‘eyes in the sky’ surveillance for UK forces. The MOD is now taking forward single source discussions with Boeing. This does not, however, represent a final decision; any purchase will be subject to the MOD’s usual acquisition approval processes. As discussions are still at a very early stage, it would not be appropriate to provide detailed information on the industrial and economic impact that a final procurement decision could have. The MOD understands, however, that Boeing is in discussions with a number of UK suppliers and is expecting to make significant use of the UK supply chain to undertake the conversion and through-life support of these UK aircraft. The decision to begin single source engagement with Boeing has only been taken after a full consideration of potential options in the market, balanced with a pressing capability need. While the UK remains committed to the principle of open competition to fulfil defence requirements, in this instance, the potential procurement of E-7 represents the lowest risk and is likely to offer best value for money for the UK. It will also provide our Armed Forces with a highly-effective, world-leading capability.

Ministry of Housing, Communities and Local Government

Building safety update

James Brokenshire: My Department published a consultation earlier this year on a proposal to introduce a ban on the use of combustible materials in the external walls of high-rise residential buildings.I would like to update the House to confirm that the Government will take forward this ban for all new buildings over 18 metres that contain flats, as well as new hospitals, residential care premises, residential schools and student accommodation above 18 metres.This ban will be delivered through changes to building regulations and will limit materials available to products achieving a European classification of Class A1 or A2. The Government will publish the consultation outcome and ensure the regulations are brought forward as soon as possible later this autumn.


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Cabinet Office

GOV.UK Verify programme

Oliver Dowden: I want to update the House on the GOV.UK Verify programme, on the creation of a digital identity market, and the provision of a digital identity service to Government. Since its inception, GOV.UK Verify has sought to create an effective standards based digital identity market in the UK. International examples point to the challenges in successfully creating a secure digital identity framework for the public and private sector. I am proud that the UK is regarded as a global leader in this space, and that the innovative assets and standards created by the GOV.UK Verify programme have been utilised by numerous international Governments. GOV.UK Verify is now sufficiently mature to move to the next phase of its development. The private sector will take responsibility for broadening the usage and application of digital identity in the UK. I can confirm that contracts have been signed with a number of private sector identity providers, for an 18 month period, and with capped expenditure. These commercial arrangements formalise the transition to a private sector led model. The Government has an immediate and growing need for digital identity. As such, I am pleased to confirm that the GOV.UK Verify programme will continue providing a digital identity service to the public sector. Poorly secured services are vulnerable to attack from cyber crime and other hostile activity. GOV.UK Verify enables citizens to securely prove that they are who they say they are to a high degree of confidence when transacting with Government online. It is a major enabler and a critical dependency for Government’s digital transformation. The Government will continue to provide state backed assurance and standards to ensure there is trust and confidence in the emergent digital identity market. The Government expects that commercial organisations will create and reuse digital identities, and accelerate the creation of an interoperable digital identity market. This is therefore the last investment that the Government will provide to directly support the GOV.UK Verify programme. It will be the responsibility of the private sector to invest to ensure the delivery of this product beyond the above period. The approach announced today ensures that GOV.UK Verify will continue to protect public sector digital services from cyber threats, including identity fraud, and other malicious activity. In addition, the contracts enable the private sector to develop affordable identity assurance services that will meet future private and public sector needs. I am pleased that the Government can continue to support the creation of a digital identity market, and the work of the GOV.UK Verify programme.

Department for Exiting the European Union

General Affairs Council, 18 September 2018

Mr Robin Walker: Lord Callanan, Minister of State for Exiting the European Union, has made the following statement:I represented the UK at the General Affairs Council (GAC) meeting on 18 September in Brussels. A provisional report of the meeting and the conclusions adopted can be found on the Council of the European Union’s website at:http://www.consilium.europa.eu/en/meetings/gac/2018/09/18Multiannual Financial Framework (MFF) 2021-2027The Presidency provided Ministers with an update on the Commission’s proposal on the MFF. Ministers discussed the extent to which EU policy priorities and the allocation of funds to different policy areas were reflected in the MFF proposal. The Commission reiterated its intention to reach consensus on the proposals ahead of the 2019 European Parliament elections. I did not intervene in the discussion on the basis that, while the UK had an interest in participation in some programmes, it was for other Member States to discuss and agree the overall priorities and funds allocations for the next MFF.Presentation of the priorities of the Austrian PresidencyThe Presidency indicated that it intended to prioritise managing migration, removing over-regulation in the Digital Single Market and creating stability in the Western Balkans.Legislative ProgrammingThe Council discussed the Letter of Intent issued by the Commission on 12 September which set out its legislative priorities for 2019. The Commission will consider Member States’ views on the proposals as it finalises its work programme. The programme is expected to be published in October and will be discussed by Ministers at the General Affairs Council meeting on 12 November. The Presidency also highlighted the need to complete important legislative files before the end of the current Commission President’s term in 2019. Ministers continued their discussion on legislative programming over a working lunch where I intervened to reiterate the UK’s support for policy areas, such as the Digital Single Market, trade and external security, in which the UK is looking to build a new relationship with the EU following our exit.Preparation of the October European Council on 18 October 2018Ministers considered the annotated draft agenda for the October European Council. Leaders are expected to discuss migration and internal security. There were no interventions from Member States on this agenda item.Rule of law in Poland / Article 7 (1) TEU Reasoned ProposalThe Council held a second hearing under Article 7(1) TEU on the rule of law in Poland. The Commission reiterated its concerns in this matter and presented the reasons behind its decision in July to start infringement proceedings against Poland in response to the lowering of the retirement age of Supreme Court judges from 70 to 65. In reply, Poland delivered a presentation on the evolution of its judicial reforms and argued its right to make changes which were consistent with the Polish constitution. The UK was among sixteen Member States which did not intervene in the hearing. The Presidency indicated that Ministers would return to this matter at future Council meetings.

EU Exit

Dominic Raab: As announced by the Prime Minister and Secretary of State for Exiting the European Union on 18 July 2018, the Government is publishing a series of technical notices during August and September. On Thursday 23 August, we published 25 of these notices, and on Thursday 13th September, we published a further 28. During Parliamentary Recess on Monday 24 September, we published a further 24 technical notices. These notices are designed to inform people, businesses and stakeholders about steps they may need to take in the event of a ‘no deal’ scenario.Notices were published on the following areas:1. Registration of veterinary medicines2. Regulation of veterinary medicines3. Accessing animal medicine IT systems4. Exporting animals and animal products5. Importing animals and animal products6. Flights to and from the UK7. Aviation safety8. Aviation security9. Trade marks and designs10. Patents11. Copyright12. Exhaustion of intellectual property rights13. European Territorial Cooperation funding14. Generating low-carbon electricity 15.Regulating chemicals (REACH)16. Manufacturing and marketing fertilisers17. Producing and labelling food18. Importing and exporting plants19. Taking your pet abroad20. Operating bus or coach services abroad21. Commercial road haulage in the EU22. Buying and selling timber23. Vehicle insurance24. Geographical Indicators Notices are being published on gov.uk. These can be found here: https://www.gov.uk/government/collections/how-to-prepare-if-the-uk-leaves-the-eu-with-no-deal Copies of notices have also been placed in the Libraries of both Houses to ensure all Members have access, and we will continue to ensure that technical notices are made available to Members.